.png "UK Chancellor Rachel Reeves pushed for Revolut’s banking licence but Bank of England governor Andrew Bailey blocked a key meeting. A sharp clash of politics vs regulation with fintech caught in the middle.")
I am Aadi and I have an MBA in marketing and finance. I spend my days helping founders navigate growth strategies and keeping an eye on how politics and regulation collide in fintech. What follows is my take on a spat between the Treasury and regulators and why it really matters beyond the headlines
Summary:
If you ever wondered what happens when government meets fintech ambition and the central bank intervenes this might surprise you. There is more drama here than you might expect.
1. A planned meeting between Revolut Treasury and the banking regulator got cancelled by the Bank of England governor
2. The chancellor was pushing to speed up Revolut’s move to become a full bank in the UK
3. The governor stepped in citing the need to protect the independence of the regulatory process
4. Revolut remains under a restricted licence with caps on deposits and no lending allowed yet
5. The clash highlights tension between growth ambition and financial stability
I have to say it feels a bit like watching two heavyweight wrestlers face off. You have the chancellor eager to jump-start Revolut’s banking licence and get the tech unicorn listing in London soon. Then on the other side sits the governor of the central bank quietly pulling the plug on a meeting that might muddy the lines between regulation and politics.
Revolut is not a random startup anymore. It’s one of the most valuable fintechs in Europe and wants to lend money like a bank rather than just hold deposits. That full licence would change the game. But it has been stuck under limits for months now. Deposits capped low and no loans on the table. It is a tricky time especially when the chancellor is talking about regulation acting like a boot on the neck of business and urging regulators to loosen up.
The governor pushed back hard. He sees value in keeping the city safe and stable. He does not want government putting thumb on the scale. That meeting between Treasury Revolut and the regulator was seen as a shortcut that could compromise independence. From his perspective that independence is non negotiable.
From a fintech or investor angle this is telling us something. If even a desirable outcome like helping a homegrown star scale is seen as too political it suggests the path for licensing and listing is going to remain cautious. That may frustrate people who want faster change but stability is not negotiable either. The freeze reflects a push and pull in the UK between building global scale and preserving regulatory trust.
The real risk may lie in perception. If Revolut starts leaning toward the US for a listing that sets a signal. That might accelerate scrutiny on London’s listing regime and how regulator and government dance around independence.
5 Do’s and Don’ts for Founders, Investors, Students, and Traders:
1. Do know when regulatory approval may be as political as it is technical.
2. Do respect the value of regulatory independence even when speed feels urgent.
3. Do watch how public rhetoric from policy makers can inflame market perception.
4. Don’t assume governments can rewrite rules to help am-going fintech businesses.
5. Don’t ignore what delays in licensing say about the broader investment climate in your sector.